The future of hedge funds lies in their ability to provide greater transparency and access so as to win the confidence of existing investors who are searching for clarification on the real risk and returns of hedge funds and attract new investors who are cautious of this investing in this opaque vehicle because they do not fully understand how they work. The Little Book of Hedge Funds offers such timely insights and explains why all investors need to be aware of their activities. Filled with introspective commentary, applicable advice and engaging anecdotes, this easy-to-read book will provide novice investors, experienced financiers and financial institutions with the tools and information needed to invest in the lucrative, mysterious world of hedge funds.
Introduction: Anatomy of a Hedge Fund: The Password Is . . .
Chapter One What Is a Hedge Fund? The Traditional Long-Only Portfolio versus the Alternative Hedge Fund Portfolio
Chapter Two The Parlor Cars of the Gravy Train: The Long and the Short of It
Chapter Three Accessing the Inaccessible: From the Elite to Main Street
Chapter Four Heads We Win; Tails You Lose: Eating Your Own Cooking while Enduring Symmetrical Glories and Punishments
Chapter Five The Alpha Game: In Search of El Dorado
Chapter Six Ironing Out Inefficiencies: Exploiting the Efficient Market Theory
Chapter Seven A Balancing Act: Outperforming the Market while Taking Less Risk
Chapter Eight If You Can't Beat 'Em, Join 'Em: Hedge Fund Manager Selection and Due Diligence
Chapter Nine The Men Behind the Curtains: Fund of Hedge Funds
Chapter Ten From Wall Street to Park Avenue: Setting Up Shop at the Hedge Fund Hotel
Conclusion: The Shape of Things to Come
Appendix: Due Diligence Questionnaire
Anthony Scaramucci is a Managing Partner of SkyBridge and was also the co-founder of Oscar Capital Management, which was sold to Neuberger Berman, LLC in 2001 after building a managed account business and four hedge funds having in aggregate more than $800 million of assets. Upon Neuberger Berman's sale to Lehman Brothers in 2003, he served as a Managing Director in their Investment Management Division.